Luxury property market remaining strong

Forty per cent of property investment in 2018 was foreign.

The annual report from Engel & Völkers confirms the strength of the luxury property market in the Balearics. Drawing on figures from the national ministry of development, the report notes that foreign investment in Balearic properties was 1,700 million euros last year, which was 40% of all property investment.

The German market continued to lead the way, followed by the British and Scandinavian. Brexit, where the British are concerned, appeared to have very little influence. One of the most expensive properties last year - a price of 25 million euros - was bought by a British buyer.

Son Vida in Palma, Andratx and Calvia were the areas with the highest prices - up to 15,000 euros per square metre. The average size of property was 750 square metres, meaning a price of eleven million euros and above. Engel & Völkers sold one property in Puerto Andratx for 30 million. The average price in these areas is somewhat lower, around five million.

The report says that prices stabilised last year after a period when they were rising and that the prospects for 2019 are positive.

In Palma, the average price of a luxury apartment in Portixol was 800,000 euros, while for houses in the old centre the average was four million.